Property Details

Marketing descriptionFederal Way is one of South King County's premier suburban retail markets, strategically positioned between Seattle and Tacoma along major commuter corridors. This central location has established the area as a highly desirable residential community with a strong and dependable consumer base. Characterized by dense, established neighborhoods and a concentration of daily-needs retail, Federal Way generates consistent, year-round traffic driven by convenience-oriented shopping patterns. The property benefits from a true infill location along a well-trafficked corridor, offering excellent visibility and accessibility, and reinforcing its position as a core neighborhood retail destination within a stable and supply-constrained market. Continued population growth and entrenched neighborhood demand support long-term retail performance and sustained tenant interest.Investment highlightsLong-Term Lease Term Through 2037 – The Safeway lease extends through 2037, delivering over a decade of secure, predictable cash flow from a market-leading grocery operator, with a contractual 7.5% rent bump in 2027 providing near-term NOI growth.Exceptional Store Sales Performance Driving Asset Strength – Safeway is achieving outstanding in-store sales of approximately $738 PSF with a remarkably low 2.23% rent-to-sales ratio, significantly outperforming typical grocery benchmarks and underscoring the location's dominance, strong customer demand, and long-term viability as a top-performing store within the portfolio.Absolute Net (NNN) Lease Structure – The lease is structured as an absolute net lease, requiring the tenant to pay taxes, insurance, maintenance, and all operating expenses, roof, and structure, ensuring predictable, passive income with zero landlord obligations.High Barrier-to-Entry Infill Location with Strong Traffic Exposure – Located in a dense, mature retail corridor with limited future supply, the asset benefits from strong visibility along key commuter routes with 13,000–17,000 VPD, supporting long-term occupancy and rent growth.Strategic Neighborhood Location – The asset is the most accessible retail destination for thousands of nearby single-family homes to the north, south, and west. Located in a mature, supply-constrained corridor with 13,000–17,000 VPD, it serves a dense trade area of 99,530 residents.Strong Household Income – The surrounding area features average household incomes exceeding $118K within 3 miles, reinforcing long-term tenant sales and the durability of in-place cash flow.